Shop order costs-Estimated Accumulated cost behavior for Weighted average ,Cost per lot batch

Hi @Nadeeka Swarnamalie ,

Estimated accumulated cost is calculated as below

Material Cost: Sum (Component Quantity Required  * Inventory Unit Cost of the Component)

Machine Cost: Sum {Work Center Setup Time  + (Work Center Run Time * Shop order lot size) * work center cost per hour)}

Machine Overhead: Sum {Work Center Setup Time  + (Work Center Run Time * Shop order lot size) * work center overhead cost per hour}

Labor Cost: Sum {Labor Class Setup Time  + (Labor Class Run Time * Shop order lot size) * Labor Class per hour)}

Labor Overhead: Sum {Labor Class Setup Time  + (Labor Class * Shop order lot size) * Labor Class overhead cost per hour}

Estimated accumulated cost will be calculated automatically until shop order reaches Started status. You need to use the option Calculate Order Estimated Cost to update the estimated accumulated cost for the Started shop orders.

Possibility of having difference between estimate and standard are when there is a standard cost defined for the part and you have done changes to shop order component required quantity or operation hours or you have used different product structure/routing revisions & alternates then what's was used while calculating the standard cost . Could you please check in the inventory part, costs tab whether you have cost for lot/batch no *. If yes, then this is being considered as standard accumulated cost.

Hope this helps!!

Regards,

Mithun K V